New York City: Chinese umbrella umbrella, red patio umbrella hit with lawsuit
NEW YORK — New York City has filed a lawsuit against a Chinese umbrella manufacturer, accusing it of defrauding customers and damaging the reputation of the city.
The city’s lawsuit alleges that the company, Shanghai-based Cocho Umbrella, marketed the umbrella as a “coach” umbrella for Chinese tourists, when in fact the company sells the umbrella to Chinese tourists for around $500.
Cocho was founded in 1989 by a young American couple, and the company has since grown to become one of the largest umbrella manufacturers in the world.
The lawsuit alleges Cocho’s marketing tactics to Chinese visitors to the city caused a loss of business for the company and harmed its reputation.
The lawsuit names the umbrella manufacturer as defendant for misrepresenting its umbrella sales to Chinese customers.
The suit says the company’s promotional efforts to Chinese users have caused an increase in complaints to the New York Department of Consumer Affairs, resulting in a decline in sales.
In a statement issued to The Associated Press, the company said the allegations in the lawsuit were “not true and are untrue.”